Top 8 Tips to Cut Business Costs

The one question that comes across every businessman’s mind is; How do I reduce my costs? There are various alternatives to a business which almost immediately cut down costs by more than 50%. All it requires is smart planning and knowledge on unique cost effective alternatives. 

At Bizcostsavers B2B Marketplace, we provide an array of solutions for you to choose from through our online listings. All our solutions will bring down your costs to a large margin. To give you a better idea, here are a few straightforward tips  which you should implement to cut costs:

1. Wages – Paying wages to full time employees with added incentives and fringe benefits can increase your expenditure quite a bit. The simplest solution for this is to adapt outsourcing. You will be able to pay the person only for the particular project they complete which is a lot lesser than offering full time employment. The amount of wages given will be comparatively lesser than the amount a full term employee gets. So you can employ specialists for short term projects. Even the concept of virtual offices and remote tech assistance help you cut costs in a convenient manner. 

2. Office Space – Instead of the common traditional offices, find a shared office space for your company. This can dramatically reduce your overhead expenses and other costs. In shared offices you get to network with other companies and promote your brand as well. If not for shared offices, you may even opt for serviced offices. You wouldn't have to worry about expenses on office furniture and maintenance because everything will be taken care of. 

3.  Furniture – When you purchase furniture for your office, it need not be brand new. You get trendy furniture in the best shape from used furniture stores. The amount you spend here will be so much lesser than what you would invest in new furniture. Some company hardly use their furniture for six months and they decide to get rid of them. So basically you can buy such furniture which is as good as brand new ones. 

4. Print and Stationary – Your stationery and print items can be quite expensive over a period of time. In such cases it’s best if you opt for a more technological approach. Don’t keep too many papers and files and also make sure you save paper while printing, by using both sides of the paper. Make use of the e-mail system and print less, this will save you a lot of ink. 

5. Electricity – One of your overhead expenses which can increase quite a lot is the electricity bills. With the overuse of internet and computers your bills will amount to a very high amount. You must look at greener options such as solar energy light bulbs and other such remedies. This will also be an effective green approach towards the environment. 

6. Hire Interns – Almost all companies make use of this simple method to cut costs. Interns basically look for experience rather than costs and you need someone to do all the small work around the office. It’s a win-win situation for both. Instead of employing a full time employee for this purpose you can just hire interns for a minimum charge or for free. 

7. Bartering – This age old method has been utilized in all fields of life and using this in the corporate world is one of the most effective ways for cost reduction. You can offer services to another company in exchange for something you need. So basically in this process, you would not be spending any cash. In addition this creates a very harmonious environment between all business sectors. 

8. Work at Home – If your staff works even once a week from home, you will be saving a lot of money which otherwise would be used on electricity and travel. With the amount of savings you may just be able to invest in some new ideas for the business. 

If you are able to adopt a business cost friendly mind set, many of these smart decisions will be easy to implement and work your way through all business decisions. Just by saving money on an everyday basis will amount to a large sum in the end.